Jobber News June 2017

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Jobber News THE TRANSFORMATION OF VEHICLE INTERIORS • IT’S ALL ABOUT YOUR CUSTOMER

JUNE 2017

Serving the Automotive Aftermarket Since 1931

THE 14TH ANNUAL RETAIL INTELLIGENCE ISSUE Enhance the digital experience with your customers

PLUS SALES TIPS MAKE SURE YOU’RE ASKING THE RIGHT QUESTIONS

SETTING THE TONE Canada Post Canadian Publications Mail Sales Agreement No. 40063170

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Jobber News

contents | june 2017 » vol. 85 no. 05

Serving the Automotive Aftermarket Since 1931

news OVER THE COUNTER

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6 6

9

COVER STORY

14TH ANNUAL RETAIL INTELLIGENCE ISSUE

Becoming a solutions provider The retail world is changing, and in more ways than one. In a connected world, customers are increasingly moving online, and that’s where their experience with you begins. Then it’s time to be a solutions provider and deliver what the customer is looking for.

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CUSTOMER EXPERIENCE |

Better Selling

If shops are suffering a labour leak – giving away labour and diagnostic work – jobbers need to step in and help them plug the hole.

33

Think about them, not you

NACE/ Automechanika preview

When it comes to survival, are you thinking about yourself or the customer? If you’re only looking inwards, you are doomed to fail. When you look outwards and understand what the customer wants and needs, you put yourself in the driver’s seat. 17

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Asbestos death

Survivors of a man who died from asbestos-related cancer were awarded $81.5 million as NAPA and Genuine Parts Corp. were found liable.

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in this issue

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Interior transformation

It’s what’s on the inside that counts for the coming wave of self-driving cars. Watch for a complete transformation of vehicle interiors.

NACE and Automechanika are teaming up for the first time in July at McCormick Place in Chicago for a trade show dedicated to automotive management and technical training.

LEADERSHIP |

It’s all about the people What makes a good leader? The people. But to have their support and buy-in of the company’s goals and vision, leaders need to be able to communicate effectively.

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columns 5 29

Leading off Thinking about the customer

35 Money & Management

SALES TIPS |

Canada could suffer from U.S. growth

Got to ask the questions

36 Social Media 101

When a customer walks in wanting a particular part, what’s the first thing you need to ask them? A DIYer might look to skimp on quality or use the wrong oil, so it’s on your counter staff to ensure the right questions are being asked.

Seven great apps to simplify your social media tasks

38 Business Management 36

Help your shop stock properly

Cover image: Warchi, iStockphoto.com

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Jobber News

leading off |

with adam malik, editor » adam@newcom.ca

FOUNDED 1931

Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts. Editor | Adam Malik (416) 510-6763 E-Mail: adam@newcom.ca Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Mark Borkowski, Bob Greenwood, Geoff Kirbyson Art Director | Barbara Burrows Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Juan Diez (416) 510-5203 E-Mail: juan@newcom.ca Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Alicia Lerma (416) 442-5600 ext. 3588 E-Mail: alicia@newcom.ca Print Production Manager | Phyllis Wright (416) 510-6786 Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

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THINKING ABOUT THE CUSTOMER ’m having renovations done on my house. And, my goodness, it has turned into a bit of a nightmare. My contractor and his employees are friendly; they’re maybe some of the nicest people you’ll ever meet. And they are doing good work, so I can’t complain about that. But my experience as a customer has left a lot to be desired. Much of it revolves around communication – which has been pretty much downright terrible since shortly after signing the contract. For example, they called us out of nowhere one night to tell me workers would be at our house at 9 the next Without a morning to begin the project. With virtually no notice, we had strong brand, to clear space and organize the area for them. And little did you can’t we know that our communication would only go downhill have a strong from there. business. Workers showed up unexpectedly. Even when they said And if you’re they’d be there, we would be left twiddling our thumbs ignoring what waiting for them. This unpredictability meant we had to make the customer sure we were always home, “just in case” someone bothered wants, you to show up. Our project, which we were told would take six risk losing to eight weeks to complete, is now past the four-month mark. that customer. When I’d had enough of this experience, I called up Repeat the the president of the company, and also spoke to the mistake often operations manager. I blasted them about these issues, and enough, and suddenly, work started happening on a regular basis. The you risk losing communication has improved and there now is light at the your business. end of the tunnel. Granted, things could have been much worse. Certainly, people have experienced contractors running off with their money, taking shortcuts, or doing slipshod work. That won’t be happening here (I assume, anyway), but my customer experience still means that my contractors won’t be getting a recommendation from me. They blew any goodwill or happy feelings that were there at the start of the relationship by simply ruining the customer experience. I have no loyalty towards them whatsoever. Now let’s consider your business. What experience are you delivering to your customer? That is what makes up your brand, according to Justin Kingsley, who recently spoke at a seminar hosted by the Automotive Industries Association’s Young Executive Society. Without a strong brand, you can’t have a strong business. And if you’re ignoring what the customer wants, you risk losing that customer. Repeat the mistake often enough, and you risk losing your business. You can have the friendliest staff and do good work, and you may think that is good enough. After all, what else could a customer, whether shop or DIYer, want? Now put yourself in their shoes. Are you building loyalty? Are you offering them something that no one else is bothering to? Are you helping them improve their business? Are you making their lives easier just by dealing with you? No? You could be giving them a good reason to go somewhere else just for a better experience. It’s not always about price, so what are you doing to keep them around? I just wanted better communication from my contractor. My 100-year-old Toronto house will need further renovations, but they’re not going to get that work. Similarly, the aftermarket is a relationship-based business. If you’re not developing that bond, it can break quite easily. JN

www.autoserviceworld.com

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over the counter | Federal-Mogul unveils Jurid to North America A new line of premium brake parts has been introduced by Federal-Mogul for passenger cars in North America. Jurid’s replacement brake pads are designed for German vehicles in North America. Its name is well known in Europe, and has ties to the original equipment market. Jurid, which was founded in Germany in 1915, covers about 98% of German passenger vehicles registered in Canada and the United States. It has been found on many Golf models from Volkswagen since the mid-1970s, and has been factory equipped on vehicles such as the Audi A3, BMW 4 Series, and Mercedes-Benz A-Class. More than 40% of Jurid’s 156 pad sets feature the same shapes as original equipment to German vehicle makers, Federal-Mogul said. “The Jurid brand is known and trusted by automotive professionals worldwide, based on its more than century-long heritage of advanced technology and premium performance for German passenger vehicles,” says Christine Fisher, Federal-Mogul Motorparts group brand manager, friction, North America.

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LOOKING INSIDE INSTEAD OF UNDER THE HOOD One research group

Delivering

expects shared driverless a seamless vehicles will be in full mobility swing by 2030. And service, with based on what has been an adaptable presented, the cars are interior space pretty bland. At least, that can from the outside. accommodate But when it comes the consumer’s to a vehicle’s interior, expect a complete unique needs, transformation, says the tastes, and ABI Research Institute. preferences, With consumers will increasingly being able to summon a vehicle when needed, become the objective of the London-based OEMs as they group predicts that car manufacturers will transition from design interiors to be car sellers reconfigurable per the to service individual needs and providers. preferences of whoever –JAMES HODGSON, is using the vehicle at INDUSTRY ANALYST AT the time. ABI RESEARCH “Car OEMs and other automotive newcomers have been imagining the interior of the driverless vehicle for some time, usually focusing on the fact that fully autonomous operation will do away with all of the usual driver distraction concerns

The interior of the Rinspeed Oasis, a concept driverless car. ABI Research says driverless vehicles mean interiors will be transformed.

and enable the occupant to fully engage in other tasks,” says James Hodgson, industry analyst at ABI Research. “But they now must consider how they can deliver a personalized in-vehicle experience for consumers who will not own the vehicles that they are using.” The group predicts more than 11 million shared driverless cars will be on streets around the world in less than 15 years, with an average 64 users per vehicle. ABI highlighted some recent concept cars featuring physically and digitally reconfigurable interiors, such as the Volkswagen I.D. Buzz, Rinspeed Oasis, and Chrysler Portal. Special interior features allow passengers to adapt the vehicle to support different uses, whether it be using it as a living space or an office. “The Volkswagen Sedric, demoed at the Geneva Auto Show, is the first example of an OEM car concept that features none of the conventional vehicle controls, and is not at all representative of the conventional driving experience,” says Hodgson. “Delivering a seamless mobility service, with an adaptable interior space that can accommodate the consumer’s unique needs, tastes, and preferences, will increasingly become the objective of OEMs as they transition from car sellers to service providers.” JN

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


AUTONOMOUS TECHNOLOGY FAILURES TOP FEAR FOR CONSUMERS Skepticism is growing among most age groups when it comes to autonomous

vehicles, says a new J.D. Power study. With the exception of the Gen Y cohort (those born between the early 1980s and late 1990s), all other generational groups have concerns over self-driving technology, posing a threat to technology developers and car manufacturers, says the U.S. Tech Choice study. Compared to just a year ago, 11% more Gen Zers (those born after Gen Y) and 9% more Pre-Boomers say they don’t trust automated technology. That said, the study showed consumers this year have a great interest in collision protection and driving assist technology. Before learning the price of a vehicle, consumers were interested in things like smart headlights, rear-view cameras, emergency braking, advanced windshield display, and more. These features come from those two categories. “In most cases, as technology concepts get closer to becoming reality, consumer curiosity and acceptance increase,” Kristin Kolodge, executive director of driver interaction and human machine interface research at J.D. Power, said in a statement. “With autonomous vehicles, we see a pattern where trust drives interest in the technology, and right now, the level of trust is declining.” Kolodge also noted that self-driving technology brings many advantages, such as collision mitigation and mobility freedom for those who are unable to operate a vehicle. However, she added, 40% of Boomers reported that they didn’t see any benefit to autonomous vehicles. “Automated driving is a new and complex concept for many consumers; they’ll have to experience it first-hand to fully understand it,” Kolodge said. “As features like adaptive cruise control, automatic braking, and blind-spot warning systems become mainstream, car buyers will gain more confidence in taking their hands off the steering wheel and allowing their vehicles to step in to prevent human error.” The study also found a generation gap. Younger consumers were found to be more comfortable with technologies that assume control of vehicle operating functions, according to the J.D. Power report. For example, this might include having mobile devices take control of infotainment systems, an in-vehicle artificial intelligence-based assistant, and autonomous driving and parking technologies. It seems, however, that consumers don’t care much for convenience technologies, such as entertainment and connectivity, as much as collision protection and technology related to driving assistance. A noted exception is that Gen Zers are fairly interested in digital key technology. That means being able to use their smart device instead of a key fob. Forty per cent, J.D. Power reports, want this, and almost 60% are willing to pay $250 for it. JN

RAYBESTOS LAUNCHES E-CATALOGUE Brakes company Raybestos announced that it has introduced a new e-catalogue that it says was built using state-of-the-art technology for optimal performance. The company says that you can work from a desktop, smartphone, or tablet to accurately and efficiently find the part and application data that is required. It came from listening to their customers, says Paul Gurns, master data management and product support manager for Brake Parts Inc. “We listened to feedback from our customers to understand their needs and then leveraged the best technology available to deliver and meet those needs. I think it will be very well received by our customers.” “We designed the data interfaces in-house to be www.raybestos.com fundamentally ACES and PIES compliant, but seamlessly extensible at both the database and delivery levels. It’s a novel approach that we haven’t seen anywhere else in the market,” says Krister Kittelson, who was part of the team that built the e-catalogue. Key features of the new Raybestos eCatalogue include competitor interchanges, enhanced sorting and filtering, buyer’s guides, and search history. The e-catalogue, which can be found online at www.raybestos.com, also contains product specifications, attributes, and images as well as product comparisons, with the ability to see up to four at a time. In the future, the e-catalogue will include 360-degree images, access to technical service bulletins, and training materials, the company says. JN

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Mevotech has been named Fast Undercar’s Vendor of the Year for 2016. The award was presented to Mevotech underneath the presidential aircraft, Air Force One, at the Fast Undercar franchisee ceremony at the Ronald Reagan Museum recently in Simi Valley, Calif. “We are truly grateful and honoured to receive this award from Fast Undercar,” said Scott Stone, Mevotech’s executive vice-president, sales and marketing, at the event. “Fast Undercar and Mevotech share core business values to provide the highest level of customer service and quality products for the professional technician. This shared focus continues to drive our success, and we’re looking forward to growing this partnership further.” JN

RANDYS WORLDWIDE BRINGS ZUMBROTA INTO FOLD Randys Worldwide announced that it has acquired Zumbrota

Bearing and Gear, a company with more than 30 years in the automotive aftermarket. Randys supplies, manufactures, and distributes performance and OE replacement driveline parts for various types of vehicles. Zumbrota’s core business is in the remanufactured transfer cases, differentials, manual transmissions, and related components fields. Randys says the acquisition will provide wholesalers and installers a wide selection of driveline parts from front to back. “Our interest in (Zumbrota) stems from their commitment to providing quality remanufactured units and replacement products,” says Kevin Kaestner, president and chief executive officer of Randys. “These product offerings, supported by amazing customer service and technical industry expertise, will continue to build Randys Worldwide as a leader in undercar driveline products.” As part of the deal, Cascade Component Parts, a distributor of OE and aftermarket components, which is owned by Zumbrota, comes under the Randys umbrella, the company says. JN www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


VEEDOL PICKS LUBESOURCE AS ITS DISTRIBUTOR Automobile Solutions Americas Inc., the official

Canadian licensee of the Veedol brand, has signed an agreement appointing LubeSource as the distributor of Veedol products in Ontario. The ASA says the partnership will allow Veedol products to go to the Ontario market “through one of the most reputed distributors and business houses in the region.” Arun Kumar, vice-president of the Americas for Veedol International Americas Inc., says, “Veedol’s preferred route to market is through strategic partners who will give us the most visibility and distribution, enhancing our reputation in the region.” He says LubeSource has a well-established process of servicing its customer base. “LubeSource has built strong relationships within the Ontario after-sales market through its diligent sales and marketing teams,” he says. “With the addition of Veedol lubricants to its product offering, the company is now able to offer a century-old brand, recognized as ‘The Professionals’ Choice,’ to their customers locally.” A company press release said selecting LubeSource as the Veedol distributor in Ontario was an easy choice. LubeSource is a strong lubricants distributor servicing the Ontario market and has built up a strong customer base. The LubeSource sales team is very knowledgeable and focused on delivering superior service to its customers. “Partnering with Veedol makes sense to us,” says

Larry Burns, vice-president and general manager of LubeSource. “We feel this is a brand that will benefit our customers with product that is only available to the professional installer and jobber.” This strategic agreement isn’t just about supplying product. Veedol will work together with LubeSource to develop dynamic marketing initiatives that will grow sales in the Ontario market and be focused on the needs of the professional customer. “We are excited to be working with one of the strongest lubricants distributors in the Ontario market,” says Antonio Ramos, marketing manager for ASA Inc. “LubeSource has a remarkable reputation in the lubricants industry here in Ontario.” JN

From left, Larry Burns, vice-president and general manager at LubeSource, and Arun Kumar, vice-president, global business development at Veedol International Americas.

NAPA, GENUINE PARTS LIABLE IN ASBESTOS DEATH A Washington state court has awarded $81.5

million to the survivors of a man who died from an asbestos-related death. A jury in Tacoma, Wash., found NAPA Auto Parts and Genuine Parts Corp. were liable for the 2015 death of Jerry “Doy” Coogan, a heavy equipment operator, of complications from mesothelioma, a rare but aggressive form of cancer that primarily develops in the lungs. It is known to be caused by asbestos exposure. It was alleged by lawyers for the family that Coogan developed mesothelioma from exposure to asbestos from brake shoes, bulk brake bands, gaskets, packing, and clutches that were distributed and sold by NAPA. The law firm of Dean Omar & Branham, LLP, said in a news release that Coogan restored hot rod and classic cars. This hobby saw him often purchase asbestoscontaining parts from NAPA stores near his home in northeast Washington. JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

“Doy Coogan had no idea that he was being exposed to deadly asbestos from just doing what he enjoyed,” said Dallas-based attorney Jessica Dean in a statement. Since asbestos-containing products have been around for many years, and the dangers of the substance are well known, Dean says to expect similar legal action in the future. “Many sellers of friction parts, such as brakes, clutches, and gaskets, have known for nearly a century that their products contain asbestos and can kill. But they refuse to acknowledge their responsibility,” she says. “Even worse, some continued to sell these products until 2001, which means that other families will surely suffer the same fate.” The trial, which lasted for 12 weeks, heard testimony from numerous doctors on both sides. The jury took five hours to deliberate before rendering its verdict. JN

Many sellers of friction parts, such as brakes, clutches, and gaskets, have known for nearly a century that their products contain asbestos and can kill. – JESSICA DEAN, DALLAS-BASED ATTORNEY

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FIX AUTO ACQUIRES AFTERMARKET COMPANIES Eleven glass and automotive aftermarket

companies are now under the Fix Auto World umbrella. The company announced the acquisitions in early April. The companies were previously held by Skidmore Group, a privately held and diversified portfolio company. Included in the purchase are the assets of Novus Glass Inc., Novus Franchising Inc., Speedy Auto Glass USA Inc., TCGI Australia PTY Ltd., TCGI (Jersey) Ltd., Novus Inc., Windshields.Com Inc., Transamerica Glass Inc., Splashes Auto Spa Inc., Shat R Proof Corp., and Windshield Doctor Canada Ltd. “By acquiring the assets of these companies and combining them with our existing Fix Auto network, we are creating the opportunity to provide complete automotive aftermarket services to our customers and partners all over the world,” said Steve Leal, president and chief executive officer of Fix Auto World, in a statement. “We will be growing our network by over 1,200 franchise, corporate, and affiliate locations worldwide, raising the Fix Auto network’s global numbers to over 2,000 franchise, retail, repair, affiliate, distribution, and manufacturing locations globally in over 40 countries. This underscores our commitment to forming a comprehensive aftermarket solution for consumers and is sure to create entrepreneurial opportunity for our franchisees to grow and develop their businesses.” Fix Auto has used pension fund company Caisse de dépôt et placement du Québec since 2015 to boost the company’s growth in new markets around the world. This deal marks the third investment since that time. “Fix Auto is now well positioned to become a global leader in its industry,” says Christian Dubé, executive vice-president, Québec, at Caisse. “Given this success, in Québec and internationally, it made sense to invest once again in Fix Auto to facilitate its expansion.” The deal closed at the end of April. JN

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


MANN+HUMMEL GETS GM AWARD

General Motors named Mann+Hummel as its 2016 supplier of the year at a ceremony in Orlando in late March. According to a news release from Mann+Hummel, the award was given specifically for its air induction system. It marked the 22nd time the company was given the award in the 25 years GM has handed it out. For this achievement, Mann+Hummel was given the Silver Anniversary Award as well. Kai Knickmann, president and general manager, automotive OEM and industrial filtration at Mann+Hummel, accepted the award along with Bill Peers, senior key account manager for GM. “This recognition as a Supplier of the Year is a clear reflection of Mann+Hummel’s commitment to excellence,” said Steve Kiefer, General Motors vice-president, global purchasing and supply chain. In all, 118 suppliers from 15 different countries were recognized by GM for exceeding the automaker’s expectations, creating outstanding value, or bringing new innovations to the company. A global team of executive members from GM purchasing, engineering, quality, manufacturing, and logistics divisions chose the winning suppliers. The selection is based on performance criteria in product purchasing, indirect purchasing, customer care and aftersales, and logistics. JN

MÄXIMUM

STRENGTH

From left, Wade C. Sheffer, executive director, global purchasing - chassis systems at General Motors; Kai Knickmann, president and general manager, automotive OEM and industrial filtration at Mann+Hummel; Bill Peers, senior key account manager for GM at Mann+Hummel; and James Danahy, executive director, global functional leader chassis engineering at General Motors.

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market watch | customer experience

BY ADAM MALIK

LOOKING OUTWARD, INSTEAD OF , TO PROSPER If you’re not innovating, you’re dying, YES conference told

Photo: OSTILL, iStockphoto.com

O

ld Spice. Kentucky Fried Chicken. Yellow Pages. What do they have in common? They innovated. How about Kodak? Oldsmobile? Blockbuster? They died. So it’s up to you: innovate or die, said Justin Kingsley, keynote speaker at the Automotive Industries Association of Canada’s Young Executive Society Conference, held in Vaughan, Ontario, at the end of March. To innovate, stop looking inwards, said Kingsley, a brand expert and creative director for the Montreal Canadiens. “The big mistake that brands make is they keep

Your brand is what people say when they leave your business and call their sister or mother about an experience they lived in your shop.

– JUSTIN KINGSLEY, BRAND EXPERT

looking in the mirror and thinking their brand is about them. And your brand is actually not about you; your brand is about the people who choose you.” People will walk into your business

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

and gain an experience. How they react afterwards is your brand, Kingsley told attendees. “Your brand is what people say when they leave your business and call their sister or mother about an experience they lived in your shop.” Companies like Blockbuster and Olds thought their business models would never change, and that people would still want to get into a big, unwieldy car and drive 10 minutes to rent a movie. Big mistake, Kingsley said. He kept the audience engaged with stories and anecdotes. Growing up in continues on page 14

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market watch | customer experience

The big mistake that brands make is they keep looking in the mirror and thinking their brand’s about them. And your brand is actually not about you; your brand is about the people who choose you. – JUSTIN KINGSLEY, BRAND EXPERT

Montreal and being a Montreal Canadiens fan, he acknowledged he was in enemy territory, and gently ribbed the Toronto audience about the Maple Leafs’ lack of success over the decades, the current season notwithstanding. It was all in an effort to show the importance of telling a story to enhance the customer experience. Success in your business best follows when the customer is engaged in your company, he said. No doubt, times are changing, Kingsley said during the half-day session, and the automotive industry is seeing plenty of change first-hand. But it’s not unlike any other profession. For example, the legal industry is facing change through technology, where robots may eventually do much of the background work required. Kingsley recalled a conversation he had with a lawyer friend, about the threats legal pros face. Kingsley listed a number of ways lawyers could apply their skills in different areas to prove their worth. But the legal profession is slow when it comes to innovation, and his friend said no one would go for change. “Well, enjoy becoming the next Blockbuster,” he told the friend. And if the aftermarket behaves the same, a similar fate could follow, Kingsley warned. Businesses need to find added value to enhance the customer experience. Anyone can go anywhere for a haircut, Kingsley said, but there’s one in particular that also gives him a head message, washes his face, applies a cream, and uses aromatherapy. “Then I figured out how she sells my haircut. It’s got nothing to do with my hair,” he said. “It’s my face.” He calls this a “me, too” product. “There are hair salons on the corner of every third street in Montreal, but ever since that day, I go see her.” And he tells all of his friends. Jobbers would be wise to think of 14

ways to enhance their own customer experience, he said. “Figure out what your North Star goal is and what makes you, your business, (and) your corporation different.” Then push that message out. But it won’t always come easy. And that was apparent during the workshop portion of Kingley’s presentation. He asked the audience a number of questions, such as what they are fighting for in their business, what they are fighting against, and what are threats to their industry. He had the audience write down their answers on sticky notes, which he posted on a wall. The responses painted a pretty gloomy response for Kingsley. “Market share. Market share. Market share,” he repeated as he read the responses to the question of what the industry is fighting for. “To have better stuff, the best on the market,” read another. Sure, that’s what you want. But is that what helps your customer? “You’re talking about fighting for what you want, but not many are talking about fighting for consumers.” Then he picked one out that he did like. “‘For people to trust the automotive aftermarket industry.’ I would start

working from there. My gut feeling when I hear all of that is, you’re not providing the best customer experience.” When he looked at answers to what the industry is fighting against, answers like ominous regulations and declining market share – there was that phrase again – popped up. Again, it comes back to looking outwards, instead of inwards, Kingsley said. “When I see stuff like ‘make a better product,’ well, yes, but what defines that?” One response, though, said “Fighting against a lack of consumer knowledge.” That piqued Kinsley’s interest. “Wow. That’s a problem. It’s your job to educate the consumer,” he said. Jobbers can’t expect that every person who walks in their door or picks up the phone to call them knows all the answers. It’s not their job to learn about the products, he said. “It’s your job to explain it.” And when you’re looking outward, he later added, you start thinking about other people instead of yourself. When you’re worried about market share and regulations, you’re allowing yourself to use outside factors as an excuse for failure. “Everything we are seeing is about what other people are doing. That’s not going to change your brand,” he said. “What about what you’re going to do? It’s about what you can do. If you wait for what other people are going to do, you’re dead meat. You’re Blockbuster.” When you think about the customer, you start to innovate. “The cars are going to change,” he said. “They might become jetpacks. I’ll bet you there’s a filter in that jetpack. I bet there are parts you’re all making and manufacturing (and selling in that jetpack).” Kingsley was the brains behind a number of well-known marketing campaigns, such as the Vancouver 2010 Olympics, clothing company Adidas’s participation in London’s 2012 Olympics, and that of Canadian mixed martial artist George St. Pierre. In the example of St. Pierre, he explained how he had to take a guy who participates in a violent sport and make him lovable to the masses. Kingsley’s mother, for example, didn’t care that St. Pierre is a world champion or a black belt

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


in multiple disciplines. She, like many others, thinks blood and violence when she hears about the Ultimate Fighting Championship or St. Pierre’s name, he said. Nothing else. But when he explained St. Pierre’s backstory, her perspective changed. St. Pierre, Kingsley said, was bullied every day as a child. Kids would tease him and spit on him. “He had no friends,” Kingsley said. Tired of it, St. Pierre took up karate and became a black belt at 12 years of age. And no one messed with him after that. “And on that day, GSP said to himself, ‘I’m going to fight every single bully I meet for the rest of my life.’” Kingsley’s mother’s attitude flipped. He had sold her on someone who she previously viewed as a brute. The point of his stories was that every business is fighting against something, but also fighting for something. For Kingsley, he was fighting against the stigma of the

violent sport St. Pierre participates in. He was fighting for showing that the sport has “real people.” What does it mean for the automotive aftermarket? Similar to other businesses. “Once you understand…what makes you, your place of business, your corporation different, that is the angle of communication,” Kingsley said. Businesses need to hook people in, he adds. “What makes us completely unique? What differentiates us from the competition? In our ‘me, too’ product world, how am I different? What are we fighting against? And does our customer care? Does our customer really care about what we are telling them, or are we still just talking to ourselves?” And can you do it quickly? You may have heard of the elevator pitch, but that lasts 30 seconds. According to Kingsley, you have three seconds. That’s how you grab people’s attention. Once they’re

1967 Winnipeg, MB (Head Office) Edmonton, AB Calgary, AB Burnaby, BC

hooked in, then you can go into a deeper dive. And remember, that window is not about what you do. It’s about what you can do for the customer, Kingsley said. If you succeed, then you have three minutes “to close the deal. That’s the world we live in.” Thanks to technology, the attention span of humans is closing down to about five to seven seconds, Kingsley said. “Goldfish have a longer attention span than human beings right now.” And your chassis system or brake pad isn’t what is going to seal the deal with customers. “You already know what people’s concerns are when they come into your business,” he said. So don’t feed them lines off the back of the brochure. Instead, ask them why the customer is there and find out their need. When you know what they want, then innovation becomes easier. JN

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market watch | leadership

BY ADAM MALIK

WHEN IT COMES TO

leadership , IT’S ALL ABOUT THE

people Let your leaders lead, Mevotech CEO tells conference

Photo: LoveTheWind, iStockphoto.com

B

eing a leader is no easy task. But if you have people who buy into what you say and believe in the goals of the company, you’re on solid foundation for success, according to Ezer Mevorach. But that’s not all, said the chief executive officer of Mevotech, who recently spoke to about 70 people at the Automotive Industries Association’s Young Executive Society Conference in Woodbridge, Ont. He was the industry mentor speaker and is a co-founder of YES.

He described Mevotech’s history and how it started out in one form, focusing on brakes. And then it turned to another, focusing on remanufacturing. Then another, as it added a focus on chassis parts. At one point, Mevotech had a dozen different product lines. But the winds of change blew through, as the industry faced pressure from parts proliferation and lower-priced products from China made their way to North American shores. Some companies went

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

under. “That was a huge wakeup call to the industry,” Mevorach said. “It was a huge wakeup call for us.” The 55-year-old married father of three realized he had to adjust to stay competitive. He said to himself, “You know what? There’s no way that we could be best in class anymore in 12 different categories.” So divisions were sold off. “The first two were water pumps and clutches, which actually were very continues on page 18

17


market watch | leadership

You have to look ahead; you have to have a feel for the industry and be able to adapt, and be able to innovate. – EZER MEVORACH, MEVOTECH

profitable. But it’s a decision we had to make, to start trimming down the product lines that we were focused on.” But then more threats came through, as American companies started to come north of the border. Mevorach realized that just being good wasn’t good enough anymore. “We felt that we had to be great – not just on the Canadian scale, but we had to be great on the North American scale.” The company sold off its CV business, closed its Montreal plant, and let people go. It was a tough decision, but one that had to be made in order for the business to be successful. It’s that kind of commitment that leaders need to have in order to be successful, he said, and it starts with communication at the ground level with your staff. “It’s all about the people. I believe that as a leader, you have to connect with everybody in the company. And it’s not easy to do. We have 500 people, so no, I don’t know everybody, but walking the floor and connecting and talking [is really important].” Mevorach noted how he conducts town halls and fires off a monthly newsletter to staff to keep them in the loop. “How will you get 500 people to follow the vision if you’re not 18

communicating to them?” he asked. He said leaders also need to communicate the company’s goals and where things are going. But there’s more. Leaders need to make employees “feel great about working where they’re working.” When you have that response from employees, it makes change easier to implement. After all, change is inevitable and is currently knocking on the door of the aftermarket, he said. “I think that you have to be ready for that. You have to look ahead; you have to have a feel for the industry and be able to adapt and be able to innovate.” And when change comes, commit yourself to it, Mevorach recommended. “It’s not easy, but you have to do it, and as a leader you really have to be committed and ready to change.” It helps to surround yourself with great minds, he added. “You absolutely have

to surround yourself with a strong team. I always believe that all of the people who work on our team all know more than I do in their areas of skill, whether it’s operations or finance or sales and so forth.” By doing so, you “expand your capabilities and multiply the results. That’s how I think a company can progress. I feel very proud of the fact that our leadership team today is a mixed bag of people who worked in entrepreneurial backgrounds and some came from corporations,” Mevorach said. This variety of talent boosts his own leadership capabilities, because he can draw on their wealth of knowledge. And don’t forget the reasons you brought them into the fold. “You have to let your leaders lead. That’s what you hired them for.” And then there’s your everyday staff’s ability to take charge, he said. You trusted them enough to hire them, so let them do their thing. “If you’re not going to trust them, if you want to micromanage them, I don’t believe that’s going to work.” And when challenges pop up and mistakes are made, learn from them. We all go through rough waters, Mevorach said. “But the key is learning. We’ve faced situations where we lost business, or we were about to, and we had to overcome it. So it’s not easy, but learning from that is what you’ve got to do as a leader.” And during a period of uncertainty, look for encouragement to pass on. When having to close down the Montreal plant,

It’s all about the people. I believe that, as a leader, you have to connect with everybody in the company. And it’s not easy to do.

– EZER MEVORACH, MEVOTECH

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


optimistic vibes were hard to come by. So Mevorach steered focus to the positives by celebrating the small wins and worrying less about the losses. He went back to Mevotech’s plan to downsize to two product lines from 12 to illustrate the importance of focus and prioritization. “What that allowed us to do was focus to be truly best in class.” The move paid off financially, but it also allowed Mevotech to concentrate more internally. “We focused a lot on culture and our people – not that we weren’t before, but we were paying more attention to it,” Mevorach said. “Things like culture and passion are hugely important to us. The result of what we’ve done is the ability to bring value to the marketplace.” He also adds that it’s important to say no. For example, Mevotech knew it needed a new enterprise resource planning system, but it had to be timed

Things like culture and passion are hugely important to us. The result of what we’ve done is the ability to bring value to the marketplace.

– EZER MEVORACH, MEVOTECH

properly. Done incorrectly, the move could bring any company to its knees, Mevorach said. “You have to be selective and prioritize and pick the right time.” Mevotech waited for the opportune moment and got the system going properly. Mevorach recommended making sure your company knows and understands its values and that it’s being lived from within. “It gets everyone on the same page. But I truly believe that as a leader, you’ve got to live the values and you’ve got to live them every day. There is no timeout; there is no ‘Yeah, but I’m the CEO.’ It sets the tone for the organization. It speaks to your core values.”

His final piece of advice was to never stop learning. “The world is not static, and our ability to evolve and educate and learn from others is mandatory. They say shift before you have to,” Mevorach said. “You have to continually invest in yourself and learn.” For example, Mevorach said he takes one day out of his calendar a month to meet with a CEO peer network. It’s a big commitment, he said, but a necessary one. “It’s a commitment that I have to make for myself and that I owe to our company. “You owe it to yourself to challenge yourself and not to live the status quo.” JN

No matter what kind of vehicle comes into your shop, rest assured you’re not just getting the right fit, but also the best quality. Keep your customers’ cars running longer, stronger with NAPA KNOW HOW. JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

866-GET-NAPA | NAPACANADA.COM 19


cover feature | 14th Annual Retail Intelligence issue

Retailing MEANS BEING MORE OF A SOLUTIONS PROVIDER

Photo: themacx, iStockphoto.com

The customer experience typically begins online.

20

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


BY GEOFF KIRBYSON

I “

Customers see the product online and then they come into the store.

Photo: Fang XiaNuo, iStockphoto.com

– CLAUDE CHALIFOUR, NAPA

f you’re not embracing the Internet to drive sales of automotive parts, your business is in grave danger of following the Edsel into the junkyard. There’s still a place for traditional advertising and selling methods, but as the world becomes more technologically inclined with every passing week, an online presence – and preferably a mobile one – is an absolute must for jobbers, experts say. NAPA Auto Parts, for example, delivers flyers across the country seven times throughout the year, but it also sends out digital versions on Flipp, a popular online shopping app, on an ongoing basis. “This is where we’re getting the biggest [sales] increase from,” says Claude Chalifour, Montrealbased director of sales development at NAPA. “Customers see the product online and then they come into the store.” Sometimes, success is a matter of taking advantage of outside opportunities that you didn’t see coming. For example, NAPA has also put a significant amount of marketing energy into Black Friday over the last couple of years, although they call it “Blue Friday” to match their corporate colours. “We had very big success with it and now we can’t let it go. It’s an event. You see fights in Walmart. We strongly believe Blue Friday is like Boxing Day. Everybody is looking for deals. We have no choice,” he says. NAPA has determined that it attracts 80% of its buying customers from online advertisements and 20% from traditional flyers. Every trend that Chalifour sees tells him that the numbers are only going to move further apart. “The Millennial guys don’t look at any print advertising. It’s like with television. My two kids both watch Netflix and lots of other kids do too, and [companies such as] Bell and Shaw are losing market share,” he says. There are no shows on Netflix about the Edsel, but there could be. It was an unattractive, overpriced, and overhyped Ford model from 195860 that is widely considered the biggest bust in

vehicular history. It also rivals New Coke for the title of most colossal disaster ever in consumer goods. Ford lost $350 million – the equivalent of $2.9 billion in 2017 dollars – on the venture. Getting to know your customer – like, really know them – is critical in boosting jobbers’ sales, according to Mitchell Osak, managing director of strategic advisory services at Grant Thornton LLP in Toronto. But while it sounds simple, having a strong understanding of their needs, mining the data you compile, and adjusting your products, pricing, and marketing accordingly, takes some organization. Many firms capture receipts, for example, but have no data on who their customer is. “They might know what they’re buying, but not correlating it with their inventory. It’s more of a spray-and-pray approach as opposed to collecting new data and using existing data. It doesn’t have to be that complicated,” he says. For example, if a customer is buying brake pads, perhaps they need calipers as well. Using a McDonald’s analogy, if jobbers mix all the potential needs together, you can create a “happy” or “value” meal. “You can only do that if you have the data and market research, analyze it, combine different pieces of information and look for relationships between them,” Osak says. It’s essential that the customer experience move well beyond the traditional focus on single transactions to fulfilling their holistic needs. For example, the McDonald’s “Happy Meal” customer might also want some dessert. “It’s important to focus on being more of a solution provider, anticipating customers’ needs and looking at them on a continuing basis, as opposed to them just coming in and out for a part,” he says, noting this could involve providing user guides on how to install the product they’re buying. Addressing these needs includes how they’d like to be served: either in-store, online, or both. “People very often know what they want to buy before they go into a store,” Osak says. “If you’re not providing a digital customer experience, you’re losing out on sales. But you still need to continues on page 22

It’s important to focus on being more of a solution provider, anticipating customers’ needs and looking at them on a continuing basis, as opposed to them just coming in and out for a part.

– MITCHELL OSAK, GRANT THORNTON LLP

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

21


cover feature | 14th Annual Retail Intelligence issue

You want to touch them enough that they don’t forget about you, but you don’t want to be annoying. You have to make sure you’re asking and taking from them but also giving back. – ANDREW GRENVILLE, MARU-MATCHBOX

have a footprint in the real world. A great customer experience isn’t one or the other. It’s both working together,” he says. So how often should jobbers reach out to customers? This needs to be well thought out, because there can be a fine line between too much and too little. “We find once or twice a month is about right,” says Andrew Grenville, chief research officer at Maru-Matchbox, a Toronto-based global market research advisory firm. “You want to touch them enough that they don’t forget about you, but you don’t want to be annoying. You have to make sure you’re asking and taking from them, but also giving back. It can be helpful to include a nugget (in your messaging) about something about the future about cars,” he says. His research shows there are five stages to the “path to purchase” – need, assessment, usage, experience, and sharing. The need stage involves customers researching where they could go to buy a particular product; the assessment stage involves weighing the various options; the usage and experience stages blend together surrounding how they’ve used the product and whether they’re happy with it; and sharing happens when you can convince customers to review the product and the shop that sold it to them in a public forum. Of particular note in the assessment stage, it’s nowhere near enough to have a customer walk in your door to check out what’s on the shelves. “A lot of people will look in your shop and while they’re still there, they’ll Google somebody else’s shop to see if they have a better price. You need to be really transparent and have good reasons why you think your products are of greater value. Get ready to confront the fact 22

You need to be really transparent and have good reasons why you think your products are of greater value. Get ready to confront the fact that they’re informed, or at least half-informed.

– ANDREW GRENVILLE, MARU-MATCHBOX

that they’re informed, or at least halfinformed,” Grenville says. Usage, experience, sharing, and following up are all ways of creating “hooks” into customers. Just as importantly, they will also give you an opportunity to make up for a bad experience. “They’ll settle for that, but they’ll never come back to you. If you understand that it happened and make it right, you’re golden,” he says. If jobbers can take a customer from need through to sharing, then they’ve come full circle and will come back to a new need. Because you’ve already seeded the idea pointing to you as the best provider, it can become a cycle that feeds itself, he says.

Even better, you will have done it with a more valuable proposition that doesn’t use traditional loyalty programs – such as Air Miles, which Grenville describes as “commodities” anyway. “Those programs are not about a relationship. If somebody down the street offers five more points tomorrow, you’re going to lose that customer. And if you do, how much did you really have them anyway?” he asks. NAPA has found the loyalty sweet spot through its partnership with the Canadian Automobile Association (CAA), which gives cardholders 10% off everything in its stores. “If you have a CAA card, you have a vehicle. If you have a vehicle, you have parts,” Chalifour says, noting annual sales growth from cardholders is well into the double digits. Strategic pricing management focuses on maximizing your margin in a lowgrowth industry. You don’t want to sacrifice margin because your products are priced too low, but at the same time, you don’t want to lose sales because the prices are too high. “If you’re the only shop providing parts for a certain car, you can take your prices up. If it’s for a Toyota Corolla, there are lots of competitors,” he says. Understanding your competitors’ pricing will provide insight how to price things in your own store, but it involves some number crunching and data analysis, Osak says. “The guy who drives a Ferrari, he’ll pay more. But if you price a Ferrari part at the same level as a Corolla part, you’re leaving money on the table. If online resellers are blowing a particular part out of their warehouses, they will likely have a significant cost advantage,” he says. “Unless you’re competing on convenience, like immediate delivery and customer experience, you’re going to lose that pricing game. You either get bigger and compete at scale, or you become more of a niche player. Maybe you move into higher-value parts.” JN Geoff Kirbyson is a freelance journalist based in Winnipeg, Man.

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017



retail sales tips | 14th Annual Retail Intelligence issue

asking THE RIGHT QUESTIONS Make sure the DIYer knows what he’s doing.

W

hen it comes to automotive repair, a lot of people’s eyes are bigger than their toolboxes. Sure, they have the best intentions of changing their own brakes or replacing part of the exhaust system, but their desire to save a few dollars or reduce their dependence on their local repair ship is often surpassed by their ability to get the job done. Or maybe more accurately, to get the job done without causing a huge mess and perhaps even damaging their vehicle. It’s up to the people behind the counter to ensure that the do-it-yourselfers aren’t getting in over their heads when buying things like brakes, exhaust, motor oil, filters, and batteries. So what’s the first thing you say when somebody comes in looking to buy brakes? “I ask for the year, make, and model. That’s the biggest thing,” says Wilf Dragon, counterperson at UAP/NAPA Auto Parts in Edmonton. “A lot of times, the only way you can tell is to physically measure them. There could be two different sizes of brake rotors, depending on what they put in at the factory. There’s no magic way to tell just by looking at the outside of the vehicle.” Ron Swyers, a salesman specialist at Superior Automotive in Stephenville, Nfld., also wants

24

to know if the customer is looking for front or back brakes, and if they’re after ceramic or semimetallic. “Chevy trucks are the worst. They could have four or five different types of brakes,” he says. Paul Chemerys, manager of Bumper to Bumper in Calgary, says he asks his customers if they’re looking for a premium product or a “price-fighter.” “There can be 10 different options as far as quality goes. There are big box stores selling offshore and really cheap parts. We have to make the customer aware of exactly what they’re getting,” he says. Chemerys also likes to know the customer’s intentions with the vehicle. “If they want to keep it for 10 years, they might want to look at a premium product that will last for the life of the vehicle,” he says. When it comes to filters, Chemerys asks what kind of oil they’re using, because it should be matched up to a filter with the same life span. “Some filters www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


BY GEOFF KIRBYSON

You get Mr. Know-It-Alls coming in and you listen to them and then tell them if they’re right or wrong. We’ve had customers who think they know what they’re doing but they don’t. You’ve got to give everybody a fair chance.

It can’t just be a 5-30 because I sell eight different types of 5-30. The oil for your BMW is completely different from that for your Chevy truck.

– PAUL CHEMERYS, BUMPER TO BUMPER

can only go 3,000 km on an oil change before they’re full of dirt. If your oil is rated for 8,000 km, you want a filter that is good for the same amount of time. If you’re using $100 of synthetic oil, you don’t want to put on a $3 filter,” he says. Dragon says it also helps to inquire about the size of the vehicle’s engine. If they don’t know that, most information can be gleaned from the serial number. “If they don’t know the engine size, we can put ‘don’t know’ in our computer system and it will give us all the different choices. Some things are universal and fit more than one vehicle, like a battery,” he says. Swyers notes that if customers aren’t sure what kind of filter they’re looking for, he’ll often ask if

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

they saved the box from their last purchase. For exhaust systems, because it is comprised of so many parts, Swyers narrows things down immediately, asking if they’re looking for a muffler, a donut, exhaust clamps, or resonator pipes. “I want to know is it before or after the manifold, and if you’re looking upstream or downstream for oxygen sensors,” he says. There’s no need to replace the entire system, but some people like to go brand-new from top to bottom. He says the problem often resides up by the gaskets. “Salt water corrodes, and with so many speed bumps and potholes out there, eventually something is going to give,” he says. Chemerys would like to know why the requested piece of the exhaust system is needed. For example, a problem with the engine, such as an oil or anti-freeze leak, could cause the catalytic converter to continues on page 26

25

Photo: Denis prof, Fang XiaNuo, iStockphoto.com

– RON SWYERS, SUPERIOR AUTOMOTIVE


fail. “Installing a new one is like putting a Band-Aid over a big cut when you need stitches,” he said. Many customers think that all motor oil was created equally, but that’s definitely not the case. Most vehicles today require a specific kind. Chemerys asks customers to check their owner’s manual to see what the manufacturer recommends. “It can’t just be a 5-30, because I sell eight different types of 5-30. The oil for your BMW is completely different from that for your Chevy truck,” he says. Using the wrong oil can cause the failure of engine components, and that could even void your warranty with the dealer, he warns. For vehicles off warranty, using the wrong oil could lead to internal engine damage. “You can get sludge build-up, which

causes failure,” Chemerys says. Swyers wants to know if the customer is looking for synthetic oil, regular oil, or 15W40, and if they’re looking for a particular brand. “If you go from synthetic oil to regular oil, you could ruin all your gaskets, and then you’ve got bigger problems,” he says. Customers might not care what kind of battery they put in their TV’s remote control, but it matters for their vehicle. Chemerys asks his customers what battery their car had coming out of the factory so he can make sure the next one is as good or better. He’s also curious if they know why it failed – perhaps because the lights were left on, or maybe a faulty alternator is causing it to require boosting every few days. “Lots of people install a car starter or stereo, and add-on electronics tend to have

I’m old-school. Thirty years ago, every dad had a garage, a set of tools, and a place to work on his vehicle. People aren’t as well equipped to do that today.

– PAUL CHEMERYS, BUMPER TO BUMPER

26

more drain on the system,” he says. Chemerys also likes to know if his customers know perhaps the most basic piece of information about their battery: where is it? “In most vehicles, it’s underneath the back seat. Sometimes you have to take the driver’s side wheel off. They’re burying them everywhere. With trucks, though, they’re still under the hood,” he says. The more information counterpeople are able to extract from their customers, the more they can determine their knowledge levels and whether they’re in over their heads. Dragon says he has seen many customers want to start throwing a variety of parts under their hood simply because their “check engine” light came on. Because so many of today’s automobile parts involve electronics, he recommends hooking up a vehicle to a scanner to see where the power is flowing – or, just as importantly, not flowing. “Otherwise, you can spend a lot of time chasing ghosts. For example, sensors work in unison. If one is gone, you’re just guessing until you hit the right one. You can replace four or five until you get it. They’re not cheap; most of them are $50 apiece,” he says. To determine if his customer is able to do the job, Chemerys likes to tell them what’s involved and ask if they have the appropriate tools and work space and whether they’ve done this kind of work before. “I’m old-school. Thirty years ago, every dad had a garage, a set of tools, and a place to work on his vehicle. People aren’t as well equipped to do that today,” he says. Swyers agrees. He says he can usually tell whether somebody can change their own oil just a minute or two into a conversation. “You get Mr. Know-It-Alls coming in and you listen to them and then tell them if they’re right or wrong. We’ve had customers who think they know what they’re doing but they don’t. You’ve got to give everybody a fair chance. Some of the women here know more than the men.” JN Geoff Kirbyson is a freelance journalist based in Winnipeg, Man.

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017

Photo: Denis prof, iStockphoto.com

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better selling |

BY ADAM MALIK

“labour leak”

HELPING SHOPS FIX THEIR

Jobbers need to ensure shops aren’t giving work away for free.

Photo: alexsl, iStockphoto.com

A

shop’s inability to do more, and charge more, for labour is putting a dent not only in their own bottom line, but the jobber’s as well. And it’s imperative for jobbers to make sure shops are putting more effort in charging for time spent diagnosing vehicles, says automotive industry coach Kelly Bennett. Selling more labour to customers means

the shop can sell them more parts, which boosts sales for jobbers, says Bennett. Way back when, he used to tell shops that their time should be evenly split between parts and labour: a dollar for one meant a dollar for another. Nowadays, labour work has increased and is an important component for shops, thanks to diagnosis work. Bennett figures the ratio

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

now sits at $1.35 in labour for every dollar of parts sold. But that doesn’t mean all shops are doing so. In fact, some are actually making more money from parts than labour, and that in turn is hurting jobbers. These shops “are really screwing up,” Bennett says. “Not only are they ordering fewer parts, they’re selling less labour.” In an eight-hour day, Bennett asks, how much labour is a shop actually billing for? He uses the example of Canadian Tire, and how that firm doesn’t even look at a car until the customer’s information is in its computer system. The typical shop, though, will take 10 minutes here or 20 minutes there to diagnose a problem with a customer’s vehicle in the parking lot – inspiring the term “parking-lot opinion” – and will never bill for that time. That is what Bennett calls a “labour leak.” “So even though shops supposedly are doing more diagnosis and fewer parts, they’re still seeing more money from parts than labour, and they’re still giving way a ton of labour,” he says. continues on page 30

29


better selling |

If I were a jobber and I’m looking at selling fewer parts because of this, I need to educate my customers on how to be better at selling labour. Because if they’re better at selling labour, they’re going to buy more parts from me.

– KELLY BENNETT, AUTOMOTIVE INDUSTRY COACH

A shop that is better at selling labour is of more value to the jobber. But that doesn’t mean the jobber can sit back and wait for the shop to figure things out, Bennett says. “If I were a jobber, and I’m looking at selling fewer parts because of this, I need to educate my customers on how to be better at selling labour. Because if they’re better at selling labour, they’re going to buy more parts from me.” And with the need for repair on the decline, says Dave Rathwell, Benson Auto Parts’ business development manager for the Ottawa Valley group, shops need to boost their profits. Doing more labour work through diagnostics is the ideal way – not giving away that work for free. “Some of these guys are hooking up their scanners and not even charging,” he says. That free work hurts everyone, he adds. Much of the issue is that the general public isn’t educated in paying for diagnostics, Rathwell says. So shops don’t charge, or charge very little, for that work. If the customer understands that a scan tool costs thousands of dollars, the shop can do more diagnostic work and, in the end, do more service and order more parts from their jobber. “It’s a tool, like a wrench or anything else,” he adds. If a jobber can show a shop how much free work is being given away – money not being made – that could change their thinking, Rathwell says. But it could take some effort. “Just keep going over it with them week after week when you make your regular visits.” It starts with a simple conversation, and taking an interest in the shop’s business, to build loyalty, says Kevin King, a U.S.based sales rep for Gem-Car, a repair shop management software company. He worked for years in the jobber market, from driving delivery trucks to managing stores. “As a jobber, don’t just go in there 30

and talk about the price of oil filters,” he advises. “You need to help shops make money with what they do in labour sales. And once you help them, they’ll be loyal to you.”

If you can boost their bottom line, that means more to them than the cost of a part. “It’s not about the cost of the product for the shop. They don’t care,” King adds, because the shop can go somewhere else to pay less. “For me, it’s not about the price; it’s about the relationship. It’s about shops being profitable.” Helping shops become more profitable is something jobbers can do to add more value to the shop-jobber experience. “On the jobber side, I think we’ve missed the boat on this,” King says. “We’ve spent too much time with training on the technical

Mahle TechPro review

T

oday’s vehicles capture and store tons of data, so having access to a fast, reliable scan tool is vital for accurate diagnostics. Simply pulling fault codes is not good enough; technicians need to be able to have two-way communication with a car. That means pulling data out of the car for evaluation, and telling the car what you want it to do. The more information you can get from the car, the more likely you will have a successful diagnosis the first time. The Mahle TechPro tested came with a 10-inch tablet, an Acer Aspire Switch 10E at the time of testing. The scan tool’s software comes preloaded and ready to go. You also get a vehicle communication interface (or VCI), a holster for the VCI, USB cable, and a docking station. The scan tool’s VCI and software can also be used with the technician’s current Windows-based desktop, laptop, or tablet. The TechPro’s ergonomically engineered VCI has a bright LED light for high visibility and confirmation that the VCI is connected and communicating. Other useful functions include always-on data recording, cylinder balance tests, compression testing, and misfire graphing. The scan tool’s key feature is the ability to decode a VIN in one second with one click. The TechPro has a number of helpful features: the tool’s quick boot-up time, the ability to gain a wireless connection to the vehicle via a Bluetooth adapter, the tool’s graphing features, and the frequency with which updates are available that allow access to additional vehicle diagnostic capabilities. This tool is very easy to set up, easy to use, and updates are available whenever Mahle releases new information. All you have to do is access the Internet and it will automatically download the info. The TechPro tested was packed complete with a quick-start guide, the necessary cables, storage pouch, and the VCI. The quick start guide directs users on how to both launch and register the tool, as well as navigate to various features. The scan tool was tested for general scan diagnostics, oxygen sensor graphing, and bi-directional controls of various modules on the following vehicles: 2016 Chevrolet Cruze, 2011 Jeep Patriot, 2010 Hyundai Santa Fe, and 2007 Pontiac Torrent.

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


side and teaching them how to put more parts on the vehicle.” King and Bennett both point out a statistic stating that 80% of consumers buy their tires from the person who quoted the price to them. The same can be said for shops when working with a jobber – offer them something of value and they will come back. “It’s the same emotional tie,” King says. “Shop owners, as they become more educated, they become more loyal and they buy more because they’re able to sell more.” JN

Some of these guys are hooking up their scanners and not even charging.

– DAVE RATHWELL, BENSON AUTO PARTS

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diagnostics The VIN decoder is a positive, and the direct link to get repair information is quite handy. TechPro also includes a Custom List feature. This feature allows you to look at a user-defined custom list to select and evaluate common PIDs such as oxygen sensor and fuel trim information at the same time for easy evaluation. It also has a vehicle-wide diagnostic trouble codes function, a quick-scan feature to query all the modules on the CAN bus and report back their status, including any detected trouble codes. A scan of vehicle-wide DTC on all modules takes 30 seconds or less with the Bluetooth-enabled vehicle communication interface (VCI), according to the company. Benefits of the TechPro are the regular updates and the fact it can be used with Microsoft Windows 7, 8, or 10. It keeps capabilities up to date and allows fixes, if necessary. The TechPro diagnostic scan tool was engineered so technicians have a fast and easy way to diagnose and repair a vehicle by using their current Windows 7-, 8-, or 10-based tablet, laptop, or desktop computer, making it unnecessary to buy or lease extra hardware. All necessary information, including an instructional video and comprehensive user guide, is just a click away. Technicians can simply connect via Bluetooth or USB cable (included) and go. To make the technician’s job easier, history is collected on a number of things, including VIN, vehicle codes, errors, and users. In addition, TechPro provides instant passthrough to repair data on Identifix, Mitchell 1, and iATN. For more information about Mahle Aftermarket Service Solutions, visit servicesolutions.mahle.com.

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By Jobber News Staff JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

31


ANNIVERSARY

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show preview |

NACE AUTOMECHANIKA CHICAGO PREVIEW

July 26-29 MCCORMICK PLACE, WEST HALL, CHICAGO

ABOUT THE SHOW The International Autobody Congress & Exposition (NACE) has teamed up with Automechanika Chicago to put on one of the largest trade shows in the U.S. dedicated to technical and managementrelated training. This will be the first time both sides will co-produce the event. The groups are planning to put on a show that focuses on training and product discovery for jobbers, technicians, and shop owners. The exhibition portion will run from July 26-28, while training will run from July 27-29. The event is expecting 600 exhibiting companies and 10,000 attendees, taking in the entire spectrum of the automotive aftermarket industry. Domestic and international manufacturers are expected to be in attendance, showcasing parts and components, accessories, repair and maintenance, management, electronics and systems, and more. While there are many courses geared towards service shops and auto body repair centres, jobbers will have many options to choose from when taking in seminars from industry instructors. For example, there will be management seminars that focus on innovation, collaboration, and execution, as well as generational leadership and succession planning. There are also sessions on mastering counter sales, selling in a connected world, and creating a culture where new hires succeed.

FORUMS A number of side forums will be running along with Automechanika, including the Business Outlook Conference. On July 26, Bob Redding, the Automotive Service

Association’s Washington, D.C. representative, will talk about how the happenings on Capitol Hill could impact distributors. It is expected that there will be information on federal and state regulators that will address connected cars, automated vehicles, and cybersecurity. Plus, expect talk on how the status quo in Washington could be in for a change, given the current presidential administration. After that wraps up, a one-hour panel discussion on telematics will be moderated by Greg Potter, executive manager and chief operating officer of Equipment and Tool Institute. Included will be a look at how telematics data is impacting parts. Other forums include the Advanced Technology & Diagnostic Repair Forum and the Collision Industry Conference.

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

EVENTS On the evening of the first day, from 5:30 to 8:00 p.m., the German American Chamber of Commerce of the Midwest will host the 2nd International Night Reception in co-operation with Messe Frankfurt. The event is designed to bring together industry professionals from German, North American, and global automotive aftermarket sectors. It is being touted as an opportunity to meet the international business world, and an opportunity to expand your network and connect with industry professionals. The Collision Repair Education Foundation will also host its 16th annual golf tournament fundraiser on Monday, July 24 at the Harborside International Golf Course. „JN 33


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money & management |

CANADA COULD SUFFER FROM U.S. GROWTH

Photo: erhui1979, iStockphoto

A

s good Canadians, we have all been taught to believe that the Canadian and American economies are tied together at the hip. If America does well, Canada will do well. If their economy picks up, ours will be pulled along for the ride. So when we hear that the U.S. is doing better, Canadians should be happy, right? Absolutely not. In fact, the accelerating American economy may surely kill the Canadian economy, and it will start with our housing market. I recently had a chance to interview Mike Verge, author of the recent book, Global Deflation, and the Next Great American Decade to Come. Today, he says, all economies of the world are inextricably linked. What happens on one side of the planet will drastically affect the other. To understand what is happening locally, you must understand what is happening globally. Verge talks about how the world has recently come through a decade of deflation that started in 2008. Most countries followed the U.S. into their own local deflation cycle, but at different speeds. Now the U.S. is about to be the first country to exit this deflationary period, and enter a decade of growth and inflation. However, this time their surge may not be good for Canadians. We are about to enter our own deflationary period. Surprisingly, he says, the culprit will be our banks – not because of what they are doing now, but because of what they did a decade ago. While U.S. banks fell victim to the sub-prime mortgage crisis in 2007, Canadian investors were protected, thanks to our banks avoiding similarly risky avenues. But as we would find out eventually, while we were protected from the disease, we were not protected from the cure. The cure began when the U.S. Federal Reserve tried to revive the faltering U.S. economy by lowering interest rates to effectively zero. Since so many people had lost their jobs in the U.S., these initiatives were very appropriate for the U.S. market. However, in Canada the actions of the U.S. Fed led to completely unintended consequences. Since Canadian banks had not followed their U.S. counterparts into the sub-prime abyss, there was no great loss of jobs and our employment rate remained relatively strong. In spite of this, however, the Bank of Canada followed the lead

As the U.S. economy gathers steam under Trump, Canadian businesses, jobbers included, should be preparing themselves for a slowdown. So when you hear Canadian politicians forecast great things for Canada because the U.S. economy is taking off, Verge says don’t believe it – it is just fake news.

of the U.S. Fed and dropped interest rates to almost zero. And, naturally, house prices took off. Simultaneously, and counterintuitively, deflation in the U.S. created a housing bubble in Canada. If the U.S. economy starts to expand under President Donald Trump, U.S. interest rates will rise. The Bank of Canada will then have two choices, neither one of which is appealing. First, keep interest rates low and watch our dollar drop in value. Or, raise interest rates and watch the housing market tumble. Either way, we reach the same outcome and Canadian housing prices are going down. This will have a huge deflationary impact on Canada. Now, Verge says, as the U.S. economy gathers steam under Trump, Canadian businesses, jobbers included, should be preparing themselves for a slowdown. So when you hear Canadian politicians forecast great things for Canada because the U.S. economy is taking off, Verge says don’t believe it – it is just fake news. JN

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

BY MARK BORKOWSKI Mark Borkowski is president of Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A brokerage firm. Contact www. mercantilemergers acquisitions.com.

35


social media 101 |

GREAT APPS FOR

SOCIAL MEDIA

M

anaging your social media accounts – finding, creating, and posting great content; scheduling posts or tweets; or simply organizing your social media activities better – can be an ongoing battle when you already have a range of more pressing tasks to do. Fortunately, there are a number of great apps that can help you stay on top of the job, or at least make it more manageable. Here’s a highly subjective list of seven apps, programs, and platforms we feel are extremely useful, and most are free – or at least, have free and paid versions. Most of them also have websites that will give you tips and in-depth information on how to make them work for your needs.

Here’s a highly subjective list of seven apps, programs, and platforms we feel are extremely useful.

3

1

Hootsuite Hootsuite allows you to manage all your social media activities – Facebook, LinkedIn, Twitter, and more – from one convenient master control, called a dashboard. You can post or reply to messages in a variety of social media, and in turn can be constantly updated on all your feeds, without having to open each platform separately. The app also makes it easy to keep apprised when anyone posts or comments on your social media, without fear of missing a post, tweet, or message. Hootsuite can be configured to do a lot more, though. You can schedule a series of messages and have them post at preset times, freeing you to compose multiple messages at once and “pay them out” one at a time. It also features a full suite of analytics, which lets you track the performance of your messages and

36

and monitor multiple Twitter accounts (yours or the accounts you’re following) from a single dashboard. You can set it up to display all your Twitter timelines, direct messages, lists, hashtags, tweets that mention your brand, and much more, updating them in real time. The app also lets you send out a tweet immediately, or schedule it to be sent at a preset time. Or, as with Hootsuite, you can compose a series of tweets in one session, and create a schedule to automatically send them out at specified times over the day or the week.

adjust accordingly, by time of post or content. You can also program it to track your brand, and be notified when users are talking about you, allowing you to keep close tabs on your online presence without constantly having to monitor your social media feeds.

2

Tweetdeck Tweetdeck works somewhat similarly to Hootsuite, but is exclusive to Twitter. It lets you manage

Canva Canva is a user-friendly graphic design program that makes it easy to create beautiful, on-brand marketing materials, social media graphics and presentations. The app is very simple to use, with customizable templates, dragand-drop functionality, and access to over one million photos, graphics tools, and fonts that you can adapt to your individual project. The finished graphic design you create can then be uploaded to your social media account, website, or you can print it out in hard copy (or take it to a printer).

4

Slideshare Slideshare is a slide-hosting service that works something like YouTube, but for slide presentations. You can upload files to the site (either publicly or privately) in popular formats such as PDF,

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017


BY LUCIANA NECHITA AND MARTHA UNIACKE BREEN

advertiser index | AAPEX .............................4 www.aapexshow.com/go

AIA Canada.................... 32 www. % * .c+)

Autoline .......................... 15 www.autoline.ca

Auto Service World ........... 10 www.autoserviceworld.com

PowerPoint, Keynote, or Open Document, allowing viewers to click through them one at a time. Slideshows can also be embedded on your site or social media posts. Individual slides can be “clipped” (saved) by viewers, and they can also add ratings, comments, or share one slide or the whole series.

5

Photo: Diego Cervo, iStockphotos.com

Trello Trello is a highly customizable project management app that uses boards, a bit like Pinterest, that helps you plan and keep track of the progress of a project. You can use it to organize your own projects, or share it with a team, so that each team member can update a project “board” as the project progresses. Each board features room to create overall task folders, which can be further divided into lists for each task. Lists, in turn, consist of “cards” that can be moved from one task list to the next or modified as needed, with comments, attachments, due dates, checklists, etc. It’s a great way to keep everyone on the same page for monitoring, organizing, and keeping track of ongoing projects, or to prioritize tasks and timelines.

6

Storify Storify lets users create “stories” or timelines using multiple social media or Web-based sources, and dragand-drop them together to create one story. Originally invented by media organizations to cover ongoing news stories

by pulling in multiple sources as they are posted, it allows you to pull together material on a single topic using multiple sources, edit, and create a new story. Storify is still great for breaking or fastchanging news, but can also be used for chronicling real-time reactions to an event, covering a meeting as it unfolds, or simply pulling together an article, or series of links on a subject. You can comment on the links you provide, or embed the original Web addresses, allowing viewers to explore further.

Brake Parts Inc. – Raybestos ....................... 28 www.raybestos.com

Chevron – Havoline .......... 16 www.havoline.com

Chrysler – Mopar ............. 27 www.mopar.ca

Continental ContiTech ...... 40 www.continental-elite.com

ITW Permatex.................. 39 www.permatex.com

Liqui Moly .........................8 www.iuseit.us

7

Boomerang from Instagram Boomerang from Instagram isn’t quite as business-focused as the other apps we’re profiling here, but can be a fun variation on straight videos. It animates still-photo series, turning them into a one-second mini-video loop, similar to a GIF, that you can upload to Facebook or Instagram. The app works by shooting 10 photos in rapid succession, placing them in sequence and smoothing the result, giving you a speeded-up video loop that looks a little like an old-fashioned silent movie, going both forwards and backwards. Youthful Instagrammers tend to post Boomerang videos just for fun, and you can too, but it could also have practical applications: providing fast-motion demonstrations of a product’s functions or features, for example. JN Luciana Nechita is director of public affairs at AIA Canada; Martha Uniacke Breen is contributing editor of Jobber News.

JOBBER NEWS / JUNE 2017 |www.autoserviceworld.com

Mevotech ........................ 23 www.mevotech.com

NAPA ............................. 19 www.napacanada.com

®

ProMax Auto Parts Depot ....2 www.autopartsdepot.ca

Schaeffler..........................7 www.repexpert.ca

Total Canada .................. 31 www.total-canada.ca

Uni-Select........................ 11 www.gomaktig.com

Wakefield – Castrol ...... 12,34 www.wakefieldcanada.ca

37


business management |

HELP YOUR SHOP STOCK PROPERLY

BY BOB GREENWOOD Bob Greenwood, AAM (accredited automotive manager), is president and CEO of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). He has over 40 years of business management experience within the independent sector of the automotive aftermarket industry in North America.

38

obbers can help their clients more than they may think in ensuring a shop is stocked properly. The problem that usually occurs, however, is that most shops simply don’t stock. There are many benefits for shops in stocking properly today. Jobs within the shop are out faster by eliminating waiting time for parts to arrive, which can create shop inefficiencies. The potential of more add-on product sales helps increase the size of the invoice. Better shop customer/client service results from having needed items in stock, which, in turn, creates improved satisfaction and confidence with the shop. Finally, a wellmerchandised shop, with products professionally merchandised and displayed, presents a more professional image. I call these guidelines the “Blueprint for Investment.” To narrow down your shop customer’s particular situation, review the following criteria for stocking a certain item. Does the shop need the item? Are there other lines that cover the same requirements or serve the same purpose? Does the shop have enough clients requiring this item or brand to justify keeping it in stock? And will the shop lose any clients if they don’t carry the item/brand? Does the shop have the room or facility to stock, display, and install the item? This can be an issue in smaller shops. Is display space available, or would it be more profitable to display a faster-moving item of the same line? Is adequate back-up storage space available? Is the shop really in the business of servicing the merchandise, and is the shop willing to assign space to store and/or install the item? When a shop is restricted to physical space to carry inventory, is it possible for the shop to purchase an old tractor-trailer, put it behind the shop, clean it up, and attach an alarm system to it, to provide stocking capacity? Do the bylaws of the area allow this? Don’t necessarily blame the shop owner for not stocking if the facility is not conducive to do so. Now, does the shop have the financial strength necessary to properly stock, or continue to carry, a slow-moving item? This is a major problem in the independent sector, as many shops have accounts receivable problems, which in turn affects your relationship with the shop, because they cannot pay their statement in full and on time. The first order of business would be to see what you could

bring to the table to assist them in reducing their receivables. There are definite solutions for this issue today, for as little as 2.75%. The second item is to measure their inventory turn/earn index by line. As a general rule, an independent shop should turn over its parts inventory between six and eight times per year. If it is below this number, then the shop has money tied up that is not working properly to create the best return on investment from inventory. Clean the lines, and help the shop ensure they stock the parts that are turning over at an efficient rate. Another key issue is the shop’s personnel. Are the shop’s staff properly trained on the items in stock, and do they know how to advise their clients on how to install and use them? (This is an issue because if they don’t know how to install the item properly, the shop may be too embarrassed to admit it, and try to end up claiming a warranty. This is wrong, as that cost, in many cases, is then funnelled right back to the manufacturer.) Do they know when to bring that particular item to the attention of the customer/client? Are the staff even aware of the items the shop stocks? Review what training/educating the shop owner has done with the staff, to insure they all know what the shop is stocking. This “Blueprint for Investment” – need, facility, finance, and people – can help you to help your clients ensure the right stock is being carried in their shops, and that they realize a good return on their investment. It will also assist you to make sure you are carrying the right stock for the shops that you sell to. This issue may be a key relationship builder if you take the initiative – but this time, approach it from the shop owner’s point of view. JN

www.autoserviceworld.com | JOBBER NEWS / JUNE 2017

Photo: Kittisak_Taramas, iStockphoto

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